2000 (1) TMI 156

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....g on behalf of the assessee submitted that the assessee had closed her business at the end of the relevant accounting year. She transferred the closing stock of her business amounting to Rs. 4,26,300 to sole proprietorship concern belonging to her son, which was styled as M/s Rajendra Kumar Mahendra Kumar at no profit no loss basis. The AO has erred in estimating profit @3% thereon and he has thus....

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....gave a g.p. rate of 10.5% as against g.p. rate of 8.91% in asst. yr. 1988-89 and 9.96% in asst. yr. 1989-90. The learned counsel thus strongly urged that the addition made by the AO in the g.p. should be deleted. 3. The learned Departmental Representative strongly relied upon the reasons mentioned in the assessment order as well as in the order of the CIT(A). He submitted that the assessee has ....

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.... her business to the sole proprietorship concern belonging to her son. Once the genuineness of this transaction has been accepted by the AO there is no justification on the part of the AO to estimate any notional or hypothetical income on such transaction. There is no material or evidence on record to prove that the assessee has charged any profit @3% as assumed by the AO on the transfer of her cl....